Eurozone Inflation August 2017

Eurozone

Eurozone: Inflation edges up in August

September 18, 2017

Complete data released by Eurostat on 18 September confirmed that harmonized inflation was 1.5% in August, rising from July’s 1.3%. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, prices for transport and accommodation services had the largest upward impacts. Annual average inflation inched up from 1.2% in July to 1.3%, a multi-year high.

Core inflation came in at 1.3% in August, matching July’s reading. Meanwhile, harmonized consumer prices rose 0.3% on a monthly basis, after falling 0.5% in July.

Looking at the countries in the common-currency bloc, the lowest inflation rates were recorded in Ireland (0.4%) and Cyprus (0.5%). On the other side of the spectrum, the Baltics saw the highest inflation with Lithuania leading the pack (4.6%). Regarding the largest economies in the Eurozone, Spain saw the highest inflation (2.0%), followed by Germany (1.8%). Meanwhile, inflation was below the region’s average in France (1.0%) and Italy (1.4%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.5% in 2017, which is unchanged from last month’s forecast. For 2018, panelists expect inflation to average 1.4%.


Author: Angela Bouzanis, Senior Economist

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